Unions, Mich. lawmakers hold state back in global market
Michigan, once regarded as one of the most industrially influential states in the union, has been reduced to its current drab condition. It makes me sad as a citizen and fourth-generation Michigan family member to see the economic downturn that has resulted from years of neglect from the state government, as well as the unions. The economic outlook is bleak at best for Michigan. It has been in a recession for years, while the rest of the country catches up. It maddens me to see the disregard, incompetence and arrogance that is exuded by our “leaders.”
The state government’s inability to observe the southern states — which are becoming the industrial powerhouses in the production and manufacture of cars — are therefore ignoring the laws and policies that have become attractive to global and national automakers. The archaic statutes and policies that have been propping up and supporting the dying unions for years need to be abolished. Right-to-work laws must be enacted. It is sickening and worrying to see the disregard that these major and very important issues are facing. This should be an alert, long overdue, for the government to realize what damage the current codes and laws are causing.
Regarding the union “philosophy” that has become skewed and taken advantage of, one would think Lansing Delta Township’s UAW workers would understand the ramifications that their strike is causing. The country is in a recession, and this is how the workers act? Do they not realize that their overly bloated wages and benefits packages are not only unfair to others, but skew the economics of efficiency? They should be grateful they obtain their current wages, and realize that GM invested millions in a new facility that keeps their positions.
The necessity of unions is over as government regulation has stepped in to take the role of unions and what they inefficiently offer. The government is set up to help the workers with their issues that may arise in the workplace. The unions are dragging down the companies that employ their members with them. Toyota and Honda have been very careful to stay away from the unions and Michigan.
When the UAW contacts these companies, they are careful not to join their ranks. They have an efficient system at these companies — unfortunately, the Big Three cannot enact these globally competitive strategies due to the union theology. I highly desire to see Toyota, Honda and other foreign automotive manufacturers invest in Michigan so it can be a global automobile capital once again. But these potential investors stay away due to the mechanics of the state government. Michigan has so much potential that has yet to be used. It is bottled up, ready for someone to open it. Now if only we could have somebody courageous enough to release it.
Alan Risko
supply chain management freshman
Published on Thursday, April 17, 2008

Comments
Pete
04/17/08 @ 10:37pm
Yes, yes, yes! I totally agree on all counts! Local “leaders” and politicos can tout Michigan manufacturing and status quo all they want, and blame globalization and anti-unions and everything else. But the truth is that we are in a global economy now whether we like it or not. Michigan workers and companies need to be truly innovative and efficient to be competitive, and can no longer rely on the bailouts and old way of doing things that got them into this mess in the first place!
I, too, have wondered how if the economy is in such bad shape and people are losing houses, how these “workers” can strike. I’m pretty sure that if I decided not to go into work, my ass would be out the door. What kind of place do we live where workers can refuse to work and get rewarded for it? This isn’t the sweatshops of the 19th century…..we have it so good.
Mark
04/17/08 @ 10:37pm
The necessity of unions is over as government regulation has stepped in to take the role of unions and what they inefficiently offer.
Is it the $5.85 /hr wage that the federal government sets? Or the massive $7.15 wage that Michigan sets? 12,168 a year or 14,872 with no vacation or health insurance is all the protection that anyone could ever want.
When corporations make big profits, that is just good old business. When a worker gets a bloated wages, that is unfair to others.
All you have to do is look at the growing disparity between the rich in poor and how the distribution of wealth in the United States changed as Union strength has waned to see why we need unions.
Oh yea, and the reason that the U.S. automakers have done poorly is not built in union costs and inefficiencies, or health care costs. It is the fact that they do not make popular cars or done anything innovative in my memory. Why don’t they get off their asses and build me a plugin electric/gas hybrid. No, they built the ford focus! Now there is a car that makes me want to spend money!
Robert
04/17/08 @ 11:11pm
The growing disparages between the rich and the poor have been grossly inflated due to liberal economic policies that do not work. Subsidies, protectionism, and other forms of governmental intervention not only lead to an inefficient system as the writer specifies, but also points us towards a socialist society.
Mark needs to attend an economics course to see that the bloated wages and other problems that the unions have caused are a major issue in fiscal prosperity for all in the future. In the short run, this is going to hurt, badly. But long run success is what needs to be looked upon.
I believe that the U.S. automakers, while not perfect, have done a decent job with what they have in the bank. The Chevy VOLT is slated for 2010 release, and the plug-in hybrids and two-mode systems from Chrysler and GM are soon to be released. Ford has the ECOBOOST technology set to be produced within the next two years. But, Mark, while your unions are creating and supporting these discrepancies and giving the competition a head start, yes, you won’t be seeing anything innovative as there will be no funds to produce products from.
Wendell
04/17/08 @ 11:34pm
I have a Toyota.
Frank
04/17/08 @ 11:51pm
Mark,
So let me get this straight, U.S. Automakers are not making popular cars, and that’s why they are on the brink of bankruptcy? It has nothing to do with the astronomically high labor costs found in the US automobile industry?
Mark, as well as a multitude of other ill-informed liberals go through like with their head buried in the sand. I cannot believe this rash incompetence is so prevelant.
Josh
04/18/08 @ 12:09am
I searched this entire page for any piece of evidence or proof that the original author or respondents on either side presented. I didn’t find anything. You are all regurgitating cliches. Please try to avoid this in the future. Thanks.
James
04/18/08 @ 12:18am
Josh,
Until you can prove otherwise, it is evident that the publishers of this newspaper believed that the author had a valid point, otherwise they would not have gone through publishing the piece. Additionally, the common knowledge of the individuals who are active in this post seems to be on track.
I believe that you should have facts to back up your claim of “regurgitating cliches” because as of this moment, it is apparent you are doing the same as those who believe they are more educated on a topic, but, at the same time, have no real arguments or legitimate points to bring up. Please try to avoid wasting our time in the future. Thanks.
-James.
Dave
04/18/08 @ 7:03am
Union workers are protesting their 29 dollar an hour jobs. Unskilled workers, as these yahoos are, do not deserve 60,000 a year for doing a job that requires no education. Unions may be justifiable for a skilled trade, but the sense of entitlement held by these workers is going to do nothing but hurt the company that employs them. Apparently they do not realize that their jobs exist because of the company, and the stockholders that invest in it. They believe that GM exists at the pleasure of the Union, but they fail to realize that without GM, they would not have jobs.
The Unions are not the only reason that the Big Three are hurting; everyone in these companies, from the fat cats in management, all the way down to the assemblers on the line, lived fat and happy for far too long; however, the failure of the Union to accept the reality of the condition of these companies showcases their sense of entitlement and their lack of understanding that the days of working on the line and having a place up north are over. I am not saying that they should make minimum wage, but they need to realize that it is no longer reasonable for them to expect ridiculously high wages for doing unskilled labor.
Ted
04/18/08 @ 8:30am
Let’s face it, unions have been a complete disaster for the state of Michigan. I really don’t think anyone can defend them either. Just look at all the southern states taking jobs, people, and tax money away from the northern states.
Also, why would any new company want to come to Michigan? To start a business in a heavy-tax, union-sympathizing state? Even to liberals that sounds absurd.
Hey Ted
04/18/08 @ 8:37am
“Even to liberals that sounds absurd.”
I think you give them too much credit. Other than that, you are right on.
Tim
04/18/08 @ 8:40am
Ted- A complete disaster? While the high wages and ample benefits paid to union workers appears to have caught up to Ford, GM et al., the high wages led to lots of consumer spending, house buying and put lots of money into the Michigan economy for decades.
As a liberal, it is hard to defend Unions at this point, but regardless of your political affiliation, its hard to defend the multi-million dollar bonsues given to Presidents and CEOs of failing corporations.
Chrysler recently bought out a bunch of employees and has announced a plan to higher a large new labor force at significantly lower, but still liveable, wages. It appears as if auto manufacturers are finally catching on.
Doug
04/18/08 @ 9:41am
I think it is important to distinguish between the union of the UAW and the unions of skilled tradesman and others. The UAW has undoubtedly tarnished the “union” label. We need to make sure when we speak of the UAW we do not encompass all labor unions.
I have worked in and around the auto industry my whole life. I have been in most of the major auto plants in Michigan. I now work in automotive construction. The company I work for employs only union labor. These union skilled trades workers working for our company are some of the most skilled, hard working, and loyal workers I have been around. I hate to see their unions trashed by a comment specifically directed at the UAW but delivered in a generic manner.
American Worker
04/18/08 @ 12:14pm
Anyone taking a supply chain management curriculum should be required to take an employment law class and a labor history class before spouting off about things of which they know very little. Before unions negotiated these “luxuries” in contracts there was no health insurance, no pensions, no vacations, no holidays, no sick time, no job security, no seniority rights, no job tenure, no overtime pay, no equal pay for equal work, no jury duty pay, no break time, no health & safety provisions, and hundreds more that workers, both blue and white collar, believe have always been bestowed on workers by generous employers. Nothing could be further from the truth. The fact is that as unions negotiated for these benefits other employers extended them to their workers both to retain help and to prevent unionization of their company.
It is a myth that the government provides and protects what unions once gained. Labor unions were instrumental in passing federal and state legislation that set minimum standards for health and safety, pay and hours. Those laws affect hundreds of thousands of workers that have never belonged to a union. Likewise labor unions were key to passing the civil rights laws, age and gender discrimination laws. But the burden to prove you have been abused by your employer is on you, the employee. You have no automatic right to a court hearing. Fear of reprisal, job loss and the huge expense of suing keep the vast majority of cases from ever being heard. There is no appeal to government when you have a grievance with your boss. There is no mediator to help you negotiate your individual contract. Without a union and a collective bargaining agreement you are an at will employee with absolutely no protection from arbitrary change to your working conditions and compensation. Quit you say, and find another job. Not so easy in this or any economy, even for supply chain management experts.
Capt. Obvious
04/18/08 @ 12:39pm
I have to laugh at the couple union supporters that have chimed in so far:
-A solution to people who are unhappy making $7/hr with no vacation: Improve your own situation! Get educated! Learn a skill! Find a job that pays more!
-Gotta laugh at the “but CEOs make bonuses!” logic. Pointing out other stupid things that failing corperations have done does not make other things less stupid (like paying a guy $30/hr for screwing in a bolt, for example)
-Thanks for the history lesson on why unions started. Last time I checked, none of that reasoning applies to why unions should be around TODAY.
Unions are around to help the bottom 25% of workers at a given job at the expense of the top 25%
GPM
04/18/08 @ 1:05pm
Reading comments on the State News always makes me realize that young people are inexperienced assholes who have no concept of how hard it really make it in the world.
Getting paid $30 dollars an hour to load screen doors onto a truck may be inefficient, but so is making millions a year to run companies into the ground. Without anyone looking out for the little guy, the disparity between the rich and the poor will start to look like in did in the dark ages — serfs, lords, and kings!
Mark
04/18/08 @ 1:18pm
Capt. Obvious,
The problem is that most jobs do not require real skills. In a well designed system a majority of the jobs should be easy to fill and easy to replace. The whole modern manufacturing process /assembly line is designed to create products where positions that require human intervention are easy to do.
Frankly, the world will always need more ditch diggers than civil engineers.
Do you really think that companies will get in a competitive war to keep the best bolt turner they have? No, they will conspire to set lower wages. The benefit of getting a person that can “screw in a bolt” better is negligible compared to competing with others on a wage basis for that worker. Each person is faced with a choice of accepting a job at $7/hr or starving. There is no benefit to any any company raising this wage, unless there is a labor shortage. With the increased mechanization of manufacturing and our border “policies” we will not be seeing a labor shortage anytime soon.
I do not see why it is such an alien concept to you that, if business can collectively set the going wage for a job in an area, the workers should be able to negotiate collectively.
Capt. Obvious
04/18/08 @ 3:57pm
Mark,
Spare me the conspiracy theories about companies “conspiring to set lower wages”. What you call conspiracy, I call looking at a cost benefit analysis of a robot doing the job and watching the robot win by an order of 10.
You are totally missing the point. If absolutely anyone can walk in and do your job, you aren’t going to get paid alot for doing it. Its simple supply and demand. The solution is to get yourself some skills that ARE in demand, so you can command more money. Don’t like digging ditches? Well why don’t you learn to be a forman of ditch digger teams? Why don’t you learn a skilled trade? Why don’t you go back to school?
If businesses were to go around and pay too little for something, then they simply could not hire people and the job would not get done.
Mark
04/18/08 @ 4:13pm
Capt. Obvious,
http://en.wikipedia.org/wiki/Traveler’s_dilemma
Ha Ha Ha
04/18/08 @ 4:20pm
Its wikipedia, and anyone can enter whatever they want, so you know its accurate.
Mark
04/18/08 @ 5:07pm
Hahaha
The problem is people, like you, who do not know how to use wikipedia. If you knew how to use it you would see that they provide links to support the sources. You should not take wikipedia as truth but you could follow the sourcing to see that this article is accurate.
For example the article sources:
http://www.sciam.com/article.cfm?id=the-travelers—dilemma&colID=1
Economics Major
04/19/08 @ 1:20am
GPM:
Last time I checked, there is still an inkling of personal responsibility that must be placed on a laborer. It is not fair for a person to sacrifice five years in school to come out into the “real world” as you so call it, and not be able to obtain the $30.00 an hour wage that is mandated by some archaic policy. If a person is lazy or decides not to go to school, there should be some sacrifice towards the person who actually studies, does well, and graduates; that is, wages should be a lot higher than that of a common laborer. If there was no incentive to go to school, who would be able to run the companies that employ the grossly overpaid workers in these menial positions? Why do we have to continually protect the “little guy” if he doesn’t take his own initiative to better himself financially or invest in his education? Now, if an employer is gracious enough to offer such wages to an uneducated employee out of the “corporate social responsibility” theory, then I support that system. But when it is forced upon a company to pay these wages inefficiently against a global marketplace, then it is an unfair principle to enact. Why do you think companies that you believe are “big and evil” are forced to look elsewhere for labor? Why do you think outsourcing is such a big problem? It’s not because of an unfair economy, the economy is more than fair; it is due to the irresponsible fiscal packages that are given to menial laborers out of law and force. If we didn’t have such grossly inflated wages, then we wouldn’t have this problem.
To American Worker:
As aforesaid, thank you for your little history bite on the unions. I believe that the author is not against the unions in that they were not necessary in the 1930’s when labor practices were very unfair, but the fact is that they are not required today. You need to do some research before you actually make these bold claims about your knowledge on labor law and labor practices. The governmental agency of OSHA ensure safety in the workplace. The government has the department of labor which contains many subgroups such as EBSA, which protects benefits and pensions, ECAB which protects workers compensation packages. These agencies all interact with the companies that manufacture goods to ensure that the employees are not mistreated, and that they receive “fair” compensation for their input into the business. However, it is counterintuitive and inefficient to have the unions, on top of the government, working on preserving and enforcing the same ideals and agreements.
And, why do you think it is not so easy to find another job? Because of the bloated and unfair wages and benefits practices enacted under force and duress towards companies. These have led to the downfall of many economies, look at Pennsylvania’s steel and coal, the rust belt states, and here at home in Michigan. Not only that, but they have slowly thrust the rest of the nation into a recession. Thank you for being greedy in a time that others need to sacrifice. The ones who actually went to school, furthered themselves in education, and challenged themselves to be better than a menial laborer riveting bolts on an assembly line have all had to suffer because of this. They have taken pension cuts, seen benefits slashed, and salaries stalled in a monetarily inflating economy, while the blue collar workers have seen nothing but concessions that have resulted in no slashes in pensions or benefits, even though salaries have stayed nearly stagnant. Thank you for not motivating those who actually have the capacity to further themselves educationally to help lead us into the future.
The fact that a student has the theoretical and ideological capacity as a freshmen in college to write and publish an article such as this is quite astounding. It is true what he stated, and you are in a state of denial. Remember, the first stage of recovery is acceptance.
Engineering Major
04/19/08 @ 3:55am
“to be better than a menial laborer riveting bolts on an assembly line “
You do not rivet bolts. I guess you could, in a way, but it would be very difficult and by no means cost-effective. If you want to do some riveting, you should probably get rivets.
Aaron K.
04/19/08 @ 5:24am
Hey Engineering Major, I believe that he was being a little bit metaphorical to get a point across. I’m currently an English student, and I can see clearly that he was being satirical to be somewhat effective in proving his point. If you’re going to be that analytical in your criticisms, you should really consider targeting something more “effective” to sound educated. Otherwise, you sound like a wisea** that nobody will listen to. I’m pretty sure you’re not very effective at proving your own points since you are an Engineering major. You can calculate wild and complicated problems and solve formulaic theorems, but you obviously lack the ability to communicate maturely and effectively.
Capt. Obvious
04/19/08 @ 5:23pm
First off, Aaron: lets not get all hot and bothered over someone using lots of big words to explain what is going on. Calling him a “wiseass” isn’t quite refuting any of his points.
Mark: That one article you reference takes me to a 404 page not found error. Actually, the wikipedia page you specify doesn’t link to an actual page either. I am still waiting for the proof of the widespread wage fixing schemes that are prevalent today.
Does GM have a responsibility to their workers? If they find that robots would simple do a job cheaper and better than the overpaid humans they currenty employ (when they aren’t busy calling in sick or striking), don’t they have a responsibility to fire all the people and go with the cost saving and quality improving robots?
American Worker
04/19/08 @ 9:10pm
Dear Econ Major:
If only the world were such a simple place and people treated each other fairly. My point is that the governmental protections, such as they are, are fragile. Most have only been around for a few years and could be repealed fairly easily. Every legislative session bills are introduced to roll back the reach of all the agencies you mentioned. Business would prefer to have those agencies eliminated. All the agencies have suffered budget cuts and staff reductions reducing their effectiveness. OSHA gets into most workplaces only once every seven years. That most employers treat employees better now than in the 1930s is not the result of their enlightened paternalism. Unions, law and court decisions have forced them to clean up their act. But it all started with unions and social reform groups. Without that voice, it is easy to predict backsliding in employer behavior.
You say that these agencies interact with business to make sure that the employees are not mistreated. In fact the whole system is reactive, responding to complaints, rather than being proactive. Employers do the minimum to reduce their liability when complaints are filed. The process to get justice in civil rights violations, sexual harassment suits, age or gender discrimination, or unlawful discharge can truly drag on for years. If you are in a union you have an advocate. If you are not covered by the NLRA you need a lawyer. You get the justice you can afford.
You seem to think that your education will protect you. People with four year degrees are the most commonly outsourced group of workers now. Doctors, who used to be independent business people, now find themselves mere employees of HMOs. These health care factories raise the doctor/patient ratio, reduce the time a doctor can spend with a patient, dictate the kinds of medications and treatments that can be dispensed. Guess what doctors are doing to gain some level of influence in their workplace. They are forming unions and negotiating for the conditions of their employment. Any worker that can be easily replaced, no matter their level of education or expertise, is at risk.
If you feel you are better positioned for success as your own advocate, go for it. But don’t begrudge the success of those who do it collectively. Indeed, negotiating solutions to problems is almost always better than “love it or leave it.” When you have roots in a community, financial commitments and family obligations it’s tough to shrug your shoulders, smile and say “oh well, that’s the free market.”
What?
04/21/08 @ 8:14am
The biggest issue I have with the main article is the reasoning that since Michigan is in recession, the workers at the GM plant should be happy with whatever scraps GM offers and not ever strike. Smacks of privilege right there.
So if Toyota and Honda start opening plants in Michigan which offer jobs with proportionally much lower wages than Union shops, will the cost of their cars be proportionally cheaper? Looking at sticker prices, it doesn’t appear so.
And what about cost of living in Southern states versus Northern/Midwest regions?
I’d just like to see the author of the article work in factory for a week. And i think it’s awesome that Economics Major can mention OSHA, coal mining industry, and then the global market where agencies like OSHA are nonexistent all in the same post and want to be taken seriously. I can make things cheap too when there’s no health, environmental, or safety oversight among other lacking factors.
I’ve worked on many a site without unions and I’ve seen some messed up situations. After one company’s sub-contractor brought in a “substation expert” who touched a 480 volt line with a screwdriver, you would have thought OSHA would pay a site visit. Nope. OSHA won’t come to a site unless there have been 3 previous reportables or a death. Guess what the next accident was? You got it. A guy fell through the roof a building and died. You think the company took any responsibility in the situation? I’ve seen contractors do asbestos abatements and not provide respirators to employees. OSHA has been hacked and slashed like so many gov’t agencies it isn’t funny. But that’s fine because the economics of it all make sense.
Unions aren’t the answer to every situation, but to abolish them is ludicrous.
Emily
04/21/08 @ 12:56pm
Yes, I think the guy making $40,000/year is definitely the problem.
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